A record-breaking 1.2 million U.S. vehicle buyers opted for electric vehicles (EVs) last year, as reported by Kelley Blue Book, a Cox Automotive company on Tuesday. The leader in EV sales? None other than Tesla.
EVs have emerged as the fastest-growing segment in car sales, capturing a 7.6% share of the total U.S. vehicle market in 2023, a notable increase from 5.9% in 2022.
The fourth quarter of 2023 alone saw a remarkable spike in EV sales, with a 52% increase compared to the same period in 2022. Americans purchased 317,168 EVs from October to December, accounting for 8.1% of all new car sales. The average price for a new EV in December 2023 was $50,789.
“Americans bought a record-shattering 1,189,051 electric vehicles (EVs) last year, and we expect that growth to continue into the future,” said Stephanie Valdez Streaty, director of Industry Insights at Cox Automotive. “The momentum is strong for more when it comes to EVs – more new product, more incentives, more inventory, more leasing and more infrastructure – and that momentum is not going away. Transaction price parity between internal combustion vehicles and EVs looks more realistic in the coming years too, presenting good news for buyers who currently see EV pricing as out of reach. Our team forecasts that EV share of the total U.S. market will reach 10% in 2024.”
Tesla continues to dominate the EV landscape, with 55% of all EVs purchased in 2023 being Tesla models. Despite a decrease from 65% in 2022, Tesla’s strategic price reductions have helped maintain its market lead. Notably, one in three EVs sold in 2023 was a Tesla Model Y, thanks to the more affordable pricing of the latter and Model 3 sedan.
In 2023, BMW’s EV sales constituted 12.5% of its total sales, with Mercedes-Benz and Audi not far behind at 11.4% and 11.0%, respectively. Volkswagen leads among non-luxury brands, with EVs comprising 11.5% of its sales.
Kelley Blue Book is projecting over 70 EV options available to consumers within the next two years.
The list of the 10 best-selling electric vehicles in the United States in 2023 is led by Tesla models, with the Tesla Model Y selling 394,497 units and the Tesla Model 3 selling 220,910 units, dominating the first and second positions. The Model X was in 9th with 23,015 units sold.
Other notable vehicles on the list include the Chevrolet Bolt EV/EUV in third at a far distance back of Tesla vehicles at 62,045, followed by the Ford Mustang Mach-E at 40,771, and Volkswagen ID.4 at 37,789 units.
